Saturday, January 28, 2023

7 Best Semiconductor Stocks to Buy for 2023

For those who are interested in riding the tech wave ... 


JANUARY 27, 2023

U.S. News & World Report

Invested

Advice, rankings and stock market news for investors.

Happy Friday, investors! Stocks get a lift as GDP data shows
faster-than-expected U.S. economic growth; Tesla rockets up 11%.

Highlights of today's newsletter include our market insights plus these new articles:

7 Best Semiconductor Stocks to Buy for 2023
11 Top Sector ETFs to Buy
7 Best Metaverse Stocks to Buy

Semiconductor and circuit board with data flowing.

The semiconductor sector was trapped in a holding pattern for the second half of 2022, as the global economy tamped down demand for technology-based chip products. But it appears to be making a comeback of late. A case in point: The recently enacted CHIPS Act earmarked some $52.7 billion for semiconductor manufacturing, research and development, and workforce development. The benchmark VanEck Semiconductor ETF (ticker: SMH) is up nearly 17% on a year-to-date basis, as of Jan. 25, and up nearly 25% over the past three months. These seven stocks, in particular, are set to move as the chip sector rises from the ashes:

NXP Semiconductors (NXPI). This semiconductor leader is up 10.2% on a year-to-date basis as of Jan. 25 and seems poised for growth. NXPI's diversified market partners in the automotive technology, banking and mobile, and Internet of Things sectors, among others, give the chipmaker reliable income sources. With NXPI trading down in 2022, the stock is relatively cheap in early 2023, trading at only 17 times trailing earnings in late January.

Qualcomm Inc. (QCOM). Like NXPI, QCOM is another diversity king in the chip sector, excelling in the auto and IoT sectors, and other premium chip-reliant industries. China is another area of growth for the company, Barclays reports. Additionally, Barclays sees Qualcomm as the "clear leader at the high end" of the market, recently upgrading QCOM to "overweight" from "underweight" and setting a new price target at $150, up from $120, for the stock. Qualcomm is up 19% on a year-to-date basis through Jan. 25.

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